Compared to legal markets, black markets have
A) products of higher quality.
B) similar prices.
C) lower profit rates.
D) more violence.

Question

Quizplus · Accepted Answer

Black markets are associated with violence due to their illegal nature and lack of legal protections. Legal markets generally have quality standards and regulations that ensure product quality, while black markets do not. Prices in black markets could vary depending on supply and demand, but they typically are higher to compensate for the risks involved in the illegal transactions. Profit rates in black markets can be high due to the lack of taxation and regulation, but they are not guaranteed to be lower than in legal markets.

Compared to Legal Markets, Black Markets Have